08/27/2007 175 Order GRANTING Application to Employ Wise DelCotto PLLC as Attorneys for the Official Committee of Unsecured Creditors (Related Doc # 102) (baa) (Entered: 08/27/2007)
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Doc 175
IN RE:
PLASTICON INTERNATIONAL, INC. CASE NO. 07-50934
DEBTOR
ORDER
This matter is before the court upon the Application of the Official Committee of Unsecured Creditors for an Order Authorizing the Employment of Wise Delcotto PLLC as Attorneys for the Committee and Approval of Retainer. An objection has been filed by the United States Trustee based upon a previous representation of a related entity by a partner in Wise Delcotto.
An objection has also been filed by Pro Plas LLC objecting only to the retainer arrangement presented by the application. The court conducted a hearing on the application and objections on August 6, 2007.
The substance of the United States Trustee’s objection is that a partner in the Wise Delcotto firm, Laura Delcotto, represented another corporation in a chapter 11 bankruptcy of whom the principal was James Turek, the principal of the debtor in this proceeding. Wise Delcotto has offered to establish an “ethical wall” to segregate Delcotto from any contact with the present proceedings. In order to approve such an “ethical wall”, the court must be satisfied that the particular attorneys involved and the circumstances involved allow the effective screening of matters involving these proceedings from the attorney in question. Based upon the representations in the affidavit, the representations made at the hearing and an extensive history of appearances by Wise Delcotto before the court, the court is convinced that an effective “ethical wall” may be established and hereby approves that process.
The objection of Pro Plas recites its assertion of a lien against cash on hand in its favor. The debtor contends that it is solvent and that it has assets beyond those necessary to satisfy the lien of Pro Plas. For this reason, the court will allow the deposit to be made, but delay distribution from the funds pending determination of the applicability of the lien of the creditor and the availability of other assets to compensate committee professionals.
IT IS ORDERED AS FOLLOWS:
1) That the application to retain Wise Delcotto be, and the same hereby is, APPROVED as set forth herein; and
2) That the debtor pay over to Wise Delcotto the retention sum sought in the application to be held by Wise Delcotto in an escrow account pending further orders of the court.
COPIES TO:
Dean A. Langdon, Esq.
John P. Brice, Esq.
E. Rebecca Case, Esq.
Gregory Schaaf, Esq.
Rachelle C. Williams, Esq.
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The affixing of this Court's electronic seal below is proof this document has been signed by the Judge and electronically entered by the Clerk in the official record of this case.
Signed By:
William S. Howard
Bankruptcy Judge
Dated: Monday, August 27, 2007
(wsh) |
